EMPLOYEE RETENTION IN PRIVATE SECTOR DISSERTATION REPORT2010 Submitted for the partial fulfillment of the requirement for the

award Of POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BYANANYA DUBEY8007 UNDER THE SUPERVISION OFINTERNAL: NIKUNJ AGARWAL DEPARTMENT OF MANAGEMENTINSTITUTE OF MANAGEMENT EDUCATION,SAHIBABAD

CERTIFICATE This is to certify that the dissertation entitled (employee retention in publicsector) and submitted by (Ananya Dubey) having roll no. 8007 for the partialfulfilment of the requirements of PGDM (batch), IME, embodies the bonafidework done by her supervision.Signature of guidePlace: Date:

ABSTRACT Employee retention is a process in which the employees are encouraged tor e ma i n wi t h t h e o r g a n i z a t i o n f o r t h e ma x i mu m p e r i o d o f t i me o r u n t i l t h e completion of the project. Employee retention is beneficial for the organizationas well as the employee. Employees today are different. They are not the oneswho dont have good opportunities in hand. As soon as they feel dissatisfiedwith the current employer or the job, they switch over to the next job. It is theresponsibility of the employer to retain their best employees. If they dont, theywould be left with no good employees. A good employer should know how toattract and retain its employees.Most employees feel that they are worth more than they are actually paid. Thereis a natural disparity between what people think they should be paid and whatorganizations spend in compensation. When the difference becomes too greatand another opportunity occurs, turnover can result. Pay is defined as the wages,salary, or compensation given to an employee in exchange for services theemployee performs for the organization. Pay is more than "dollars and cents;" italso acknowledges the worth and value of the human contribution. What peoplea r e p a i d h a s b e e n s h o w n t o h a v e a c l e a r , r e l i a b l e i m p a c t o n t u r n o v e r i n numerous studies.Employees comprise the most vital assets of the company. In a work placew h e r e e mp l o ye e s a r e n o t a b l e t o u s e t h e i r f u l l p o t e n t i a l a n d n o t h e a r d a n d valued, they are likely to leave because of stress and frustration. In a transparentenvironment while employees get a sense of achievement and belongingnessfrom a healthy work environment, the company is benefited with a str onger,reliable work-force harbouring bright new ideas for its growth Blog Online AndEarn Money.

ACKNOWLEDGEMENT I a m v e r y g r a t e f u l M r s . Ni k u n j Ag a r w a l f o r g i v i n g me t h e o p p o r t u n i t y o f working in this project and give me useful instruction .I extend my regards and sincere thanks to Dr. Taruna Gautam with who support& effort, I completed my project.Also I am thankful to the management and my fellow colleges for making my project duration a memorable and fruitful one. Ananya Dubey(Post graduation diploma in management)HR & I.T.INSTITUTE OF MANAGEMENT EDUCATION

CONTENTS 1. Introduction Need of the study Scope of the study2. Research methodology Objective of the study Research methodology (Sample size, Instrument used, Methods of datacollection) Scope of the study limitations6. Descriptive work 7. Data Analysis8. Suggestion and Conclusions9. Bibliography10. References11.Appendices12. Checklist of the items in the project

Introduction Employee turnover is one of the largest though widely unknown costs anorganization faces. While companies routinely keep track of various costs sucha s s u p p l i e s a n d p a yr o l l , f e w t a k e i n t o c o n s i d e r a t i o n h o w mu c h e mp l o ye e t u r n o v e r wi l l c o s t t h e m: E r n s t & Yo u n g e s t i ma t e s i t c o s t s a p p r o x i ma t e l y$120,000 to replace 10 professionals. According to research done by Sibson &Company, to recoup the cost of losing just one employee a fast food restaurantmust sell 7,613 combo meals at $2.50 each. Employee turnover costs companies30 to 50% of the annual salary of entry-level employees, 150% of middle-levelemployees, and up to 400% for upper level, specialized employees. Now that somuch is being done by organizations to retain its employees.Why is retention so important? Is it just to reduce the turn over costs ?Well, the answer is a definite no. Its not only the cost incurred by a companythat emphasizes the need of retaining employees but also the need to retaintalented employees from getting poached.Retention involves five major things: Compensation Environment Growth Relationship Support Compensation:

Compensation constitutes the largest part of the employee retention process.The employees always have high expectations regarding their compensation packages.Compensation packages vary from industry to industry. So an attractivecompensation package plays a critical role in retaining the employees.Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the followingcomponents should be kept in mind:

Salary and monthly wage : I t i s t h e b i g g e s t c o m p o n e n t o f t h e compensation package. It is also the most common factor of comparisonamong employees. It includes Basic wage House rent allowance Dearness allowance City compensatory allowanceSalary and wages represent the level of skill and experience an individual has.Time to time increase in the salaries and wages of employees should be done.An d t h i s i n c r e a s e s h o u l d b e b a s e d o n t h e e mp l o ye e s p e r f o r ma n c e a n d h i s c o n t r i b u t i o n t o t h e o r g a n i z a t i o n . B o n u s : B o n u se s a r e u s u a l l y g i v e n t o t h e employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long -term incentives: Long termincentives include stock options or stock grants. These incentives help retainemployees in the organization's start up stage. Health insurance : Health insurance is a great benefit to the employees. Itsaves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that theorganization cares about the employee and its family. After retirement : It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation : It may include employee assistance programs (like psychological counselling, legal assistance etc), discounts oncompany products, use of a company cars, etc. Employers And Their Key Drivers To Attract And Retain Talent Employers Key Drives To Attract And Retain Talent

Procter and Gamble India Early responsibilities in career Flexible and transparent organizational culture Global opportunities through a variety of exposure an d d i v e r s e experiences Performance Recognition American Express (India) Strong global brand Value-based environment Pioneer in many people practices NTPC Learning and growth opportunities Competitive rewards Opportunity to grow, learn and implement S t r o n g s o c i a l s e c u r i t y a n d e mp l o ye e we l f a r e p e r f o r ma n c e o r i e n t e d culture. Johnson & Johnson Strong values of trust, caring fairness, and respect within the organization Freedom to operate at work Early responsibility in career

 Training and learning opportunities Visible, transparent and accessible leaders Competitive rewards Innovative HR programs and practices Glaxo Smith Kline Consumer Healthcare Performance-driven Rewards Its belief in Growing our own timber Comprehensive development and learning programs Flat organization, where performance could lead to very quick progression Challenging work context Competitive rewards Exhaustive induction and orientation program Tata Steel Organization philosophy and culture Job stability Freedom to work and innovate Colgate Palmolive India Company brand Open , transparent, and caring organization Management according to the managing with respect to guiding principles

 Training ad development programs Structured career planning process Global career opportunities Wipro Companys brand as an employer Early opportunities for growth High degree of autonomy Value compatibility Innovative people program Indian Oil Corporation Company brand image Work ethics Learning and growth opportunities Challenging work assignments Growing organization TCS The group brand equity Strong corporate governance and citizenship Commitment to learning and development

 Best in people practices Challenging assignments Opportunity to work with fortune 500 clients Organization EnvironmentIt is not about managing retention. It is about managing people. If anorganization manages people well, employee retention will take care of itself.Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organizationwhich provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A feeling that the organization is second home to the employeeOrganization environment includes Culture Values Company reputation Quality of people in the organization Employee development and career growth Risk taking Leading technologies TrustTypes of environment the employee needs in an organization

Learning environment : It includes continuous learning andimprovement of the individual, certifications and provision for higher studies, etc. Support environment : Organization can provide support in the form of work-life balance. Work life balance includes: Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness Work environment : It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of suchenvironment pushes employees to look for new opportunities. Theenvironment should be such that the employee feels connected to theorganization in every respect.Growth and Career Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances thathell leave the organization as soon as he gets an opportunity. Theimportant factors in employee growth that an employee looksfor himself are: Work profile : The work profile on which the employee is workingshould be in sync with his capabilities. The profile should not be too low or toohigh. Personal growth and dreams : Employees responsibilities in theorganization should help him achieve his personal goals also.

Organizations can not keep aside the individual goals of employees andfoster organizations goals. Employees priority is to work for themselvesand later on comes the organization. If hes not satisfied with his growth,hell not be able to contribute in organization growth. Training and development : Employees should be trained and givenchance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizationssuccess depends. These trainings can be given toimprove many skillslike: Communications skills Technical skills In-house processes and procedures improvement related skills or customer satisfaction related skills Special project related skills Need for such trainings can be recognized from individual performancereviews, individual meetings, employee satisfaction surveys and by being inconstant touch with the employees.Importance of Relationship in Employee Retention ProgramSometimes the relationship with the management and the peers becomes thereason for an employee to leave the organization. The management issometimes not able to provide an employee a supportive work culture andenvironment in terms of personal or professional relationships. There are timeswhen an employee starts feeling bitterness towards the management or peers.This bitterness could be due to many reasons. This decreases employeesinterest and he becomes demotivated. It leads to less satisfaction and eventuallyattrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships atwork, the management should keep the following points in mind.Respect for the individual: Respect for the individual is the must in theorganization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It ishis duty to involve the employee in the processes of the organization. Soan

organization should hire managers who can make and maintain goodrelations with their subordinates. Relationship with colleagues : Promote team work, not only amongteams but in different departments as well. This will induce competitionas well as improve the Relationship among colleagues. Recruit whole heartedly : An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel uselessand will be dissatisfied.Employees should know what the organization expects from them and whattheir expectation from the organization is. Deliver what is promised. Promote anemployee based culture: The employee should know that the organization isthere to support him at the time of need. Show them that the organization caresand hell show the same for the organization. An employee based culture mayinclude decision making authority, availability of resources, open door policy,etc. Individual development : Taking proper care of employees includesacknowledgement to the employees dreams and personal goals. Createopportunities for their career growth by providing mentorship programs,certifications, educational courses, etc. Induce loyalty : Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employeesstay instead of recruiting new ones. Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so thateach one of them is a success. Management should try to focus on its employeesand support them not only in their difficult times at work but also through thetimes of personal crisis. Management can support employees by providing themrecognition and appreciation. Employers can also provide valuable feedback toemployees and make them feel valued to the organization.The feedback from supervisor helps the employee to feel more responsible,confident and empowered. Top management can also support its employees intheir personal crisis by providing personal loans during emergencies, childcareservices, employee assistance Programs, conseling services, etcEmployers can also support their employees by creating an environment of trustand inculcating the organizational values into employees. Thus employers cansupport their employees in a number of ways as follows: By providing feedback

 By giving recognition and rewards By counseling them By providing emotional support

RESEARCH METHODOLOGYResearch Design :The research design indicates the type of research methodology under taken tocollect the information for the study.The researcher used both descriptive and analytical type of research design for his research study. The main objective of using descriptive research is todescribe the state of affairs as it exits at present. It mainly involves surveys andfact finding enquiries of different kinds. The researcher used descriptiveresearch to discover the characteristics of customers. Descriptive research alsoincludes demography characteristic of consumer who use the product.The researcher also used analytical research design to analyze the existing factsfrom the data collected from the customer. Area of study :

The area of study is confined to employees of GEMINI COMMUNICATIONLTD,Chennai. Research instrument: The Structured questionnaire is used as the research instrument for the study. Questionnaire Design: The questionnaire framed for the research study is a structured questionnaire inwhich all the questions are predetermined before conducting the survey. Theform of question is of both closed and open type.The scales used to evaluate questions are: Dichotomous scale (Yes or No) Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor dissatisfied, Dissatisfied, Highly dissatisfied) Category scale (Multiple items) Ranking type (R1, R2, R3)The questionnaire for the research was framed in a clear manner such that itenables the respondents to understand and answer the question easily. The